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Chart of the Week: SPX Chart — support
Posted By Barry Ritholtz On January 7, 2005 @ 12:00 pm In Markets | Comments Disabled
The S&P 500, even with the recent more aggressive selling, has not scored any structural breakdowns in trend. This suggests the recent "distributive wave" is more a correction of near-term over-exuberance than anything deeper.
Chart Watch – S&P 500 weekly chart with trend lines
click for larger chart
chart courtesy of Redwood Technimentals 
does not mean we can’t correct more after a modest bounce — but as of now, there is no evidence to support the notion that this
is the start of a much larger correction — at least not yet.
Even with the recent pullback and moderating internals, neither support levels (red & green line – 1,175 and 1,160 levels respectively) nor the uptrend (black line) on the S&P 500 have yet to be violated.
Quote of the Day
"Reality is merely an illusion, albeit a very persistent one."
-Albert Einstein 
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2005/01/chart-of-the-week-spx-chart-support/
URLs in this post:
 Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/spx_2005_support.jpg
 Redwood Technimentals: http://www.technimentals.com/cgi-bin/mesh
 Stocks are not cheap : http://cbs.marketwatch.com/news/story.asp?guid=%7B8B08385C%2D8C3A%2D4638%2DBA84%2DC431A9AE9AD1%7D&siteid=mktw&dist=
 Fed Minutes Hold More for the Markets to Ponder
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NYSE Seat Fetches Only $1 Million, A Nine-Year Low: http://www.atimes.com/atimes/Middle_East/GA05Ak03.html
 Why Gift Cards Are Evil: http://slate.msn.com/id/2111769/
 Albert Einstein: http://www.heartquotes.net/Einstein.html
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